Integrity Focus

The ICAC had earlier charged five people in separate cases for their roles in a $37.5 million critical illness insurance compensation scam in which an insurance agent arranged cancer patients to pose as policyholders to undergo medical examinations at clinical institutions to obtain medical certificates. Following the guilty pleas and jail sentences of four defendants, the last defendant in the cases, a policyholder, was sentenced to 32 months’ imprisonment after pleading guilty to conspiracy to defraud at the District Court today (March 4).

Liao Xiaoyi, 45, designer, pleaded guilty to two counts of conspiracy to defraud, contrary to the Common Law.

In sentencing, Deputy District Judge Mr Cheang Kei-hong said Liao Xiaoyi played an indispensable role in the scam even though she did not participate in planning it. The court had to mete out a deterrent sentence in view of the seriousness of the offences involved.

The court heard that in May 2017, Liao Xiaoyi took out a critical illness insurance policy with AIA International Limited (AIA) through then insurance agent Wong Ka-keung and made claim applications subsequently.

The ICAC investigation arose from a corruption complaint in relation to the claim applications which revealed that in November 2019, Liao Xiaoyi’s elder sister was diagnosed with ovarian cancer. Between November 2019 and February 2020, the elder sister posed as Liao Xiaoyi to undergo medical examinations or treatments at two clinical institutions under the arrangement of Wong, so as to facilitate Liao Xiaoyi to file claims with AIA. The claims were eventually declined or withheld as AIA found them suspicious.

Enquiries also revealed that Liao Xiaoling, the younger sister of Liao Xiaoyi, had incited Wong to make two false certificates of sickness claiming that their elder sister suffered from another illness and was granted a total of 390 sick leave days by a medical doctor.

AIA had rendered full assistance to the ICAC during its investigation.

The prosecution was today represented by Senior Public Prosecutor Audrey Parwani, assisted by ICAC officer Jeff Chow.

The ICAC had earlier charged Wong, Liao Xiaoling and two other persons with conspiracy to defraud, forgery and incitement to commit forgery. Wong and the duo were sentenced to jail terms ranging from four and a half years to six years and four months at the Court of First Instance of the High Court last week following their guilty pleas. Meanwhile, Liao Xiaoling pleaded guilty to her charges and was sentenced to four months’ imprisonment in the Eastern Magistrates’ Courts last November.

The ICAC reminds members of public and policyholders not to take part in any insurance-related corrupt and illegal activities while insurance intermediaries should uphold integrity. The ICAC collaborated with the insurance industry to compile the “Corruption Prevention Guide for Insurance Companies” which assisted insurance companies in building and strengthening their corruption prevention capabilities in key operational areas such as claims verification. The ICAC will continue to collaborate with the industry in providing integrity training to insurance intermediaries. Information is available at the “Ethics Promotion Website for the Insurance Industry” produced by the Hong Kong Business Ethics Development Centre.